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November 20, 2012  Tue 3:16 AM CT

USB: SEE CHART GET CHAIN FIND STRATEGIES
As shares of U.S. Bancorp continued to bounce yesterday, one long-term trade was betting on a floor beneath the stock.

A trader sold 5,000 January 2014 25 puts for the bid price of $1.33, according to optionMONSTER's systems. The volume was twice the open interest in the strike at the start of the day, so it was a new position.

USB rose 1.7 percent to $32.08, building on Friday's gains and erasing its losses of last week. The financial stock was at a four-year high just above $35 in early October, but Thursday's low of $30.96 was its lowest price since June.

The put selling is a bet that USB will hold above $25 through mid-January 2014. The trader faces the obligation to buy shares on a pullback, but at an effective price of $23.67. (See our Education section)
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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